Breach of security.A telecommunications firm is sued by a customer claiming they were sold a defective system with inadequate security protections. The customer claims the faulty system allowed individuals to access their phone system and, as a result, they incurred fraudulent overseas charges.Indemnity Paid: $3,450,000

Sufficient
Limits Are Key

Establishing secure
and plausible limits on property coverage is not only
essential
but also tedious. Inadequate coverage is often directly
related to inaccurate assessments and multiple location
properties. Knowing how to cope with and avoid these
problems is quite easy.

You can avoid inaccurate assessments — a
main cause of insufficient insurance coverage — by
updating an appraisal on the property. If this doesn’t
solve the problem, get a complete value assessment
of your property from a professional. Failure to
do so will ensure more red flags in the future, such
as coinsurance requirements and penalties.

Possessing
multiple property locations also can lead to insufficient
coverage. Don’t make the mistake of refusing
to check the limits on those individual properties.
To ensure adequate coverage, be sure that all of
the individual property limits match the overall property
limit. Create a “blanket limit” to carry
this out, but take care to see that there are no “sub-limits” on
individual locations.

To guarantee sufficient limits
on your company’s property, pay attention to
inaccurate assessments and multiple property locations.
We can help if you’re unsure of your limits.